How SIPPs Work?

A SIPP (Self-Invested Personal Pension) is a type of UK Registered Pension Scheme, the legal structure of which can qualify for you for several tax benefits. Unlike the majority of personal pensions, this pension structure is separate from the individual investments it can hold.

Setting the SIPP up under a Trust which is registered with HMRC makes certain that the funds within the SIPP are governed under the UK pension legislation. Such legislation stipulates where the pension can be invested, how and when benefits can be taken and the legal guidelines it must follow. What a SIPP means to you:

  • Complete control of the investments made through your pension
  • Access to a wider choice of investments
  • Greater flexibility as to when you take the SIPP benefits
  • Cost savings from traditional investment charges

After setting up the SIPP, existing pensions can be transferred into it. You can also make new contributions to your SIPP if you are eligible to do so. The SIPP allows you to:

  • Set up a bank account to store your cash holdings and to operate the pension from
  • Make collective investments through the provider investment platform or even directly into a fund
  • Trade securities, stocks and shares utilising a stockbroker
  • Commercial Property investment